Fraud and Asset Recovery

SPECIALISATIONS

1. Fraud & Asset Recovery 
2. Venture Capital & Startups
3. Product Counterfeiting
4. Asbestos
5. Franchising
6. Project Development

Apart from the regular services our attorneys are specialised in a number of specific areas. 

Intensifying our focus in these areas makes us the leading law firm in knowledge and expertise in them. Our specialised attorneys are engaged in the material on a daily basis, which gives them the knowledge edge they need to advise our clients. Our specialists publish regularly, both in national dailies and in professional journals, and give frequent talks and presentations in their areas of specialisation. In many cases, this makes them recognised as leading experts in their fields. LXA has specialised intensely in the fields shown here.

Fraud is something that companies must be ever-vigilant for. One out of five companies faces at least one incident of material fraud every year. Knowing how to prevent fraud is a critical business skill. And when fraud happens, you need to know how to respond fast. One of the things that has to happen as fast as possible is securing your assets.

Each one of the attorneys in the Fraud practice group focuses their specific areas of legal expertise primarily on fighting fraud. They work closely with specialists in labour law and criminal law, and with forensic investigators.

Whenever there is a suspicion of fraud, it is of critical importance to immediately take the right steps in the right order. Throughout the process, it is vital to keep the circle of trust as small as possible. Do not confront the suspected fraudster(s) with the suspicions, but contact us immediately to initiate the next steps. LXA has the knowledge and network needed to coordinate all actions.

1. Securing assets

The assets misappropriated by fraud must be secured as quickly as possible. This can be done by levying prejudgment attachment. The attachment will prevent the fraudster from being able to dispose of the assets.

2. Investigation

A good investigation is critical. It will not only establish the scope of the fraud, but track down where the misappropriated assets can be recovered.

3. Civil suit

After attachment is levied, a civil suit must follow. In the civil suit, the liability of the fraudster(s) must be established. The full extent of the damages resulting from the fraud must also be determined.

4. Employment law

Because company fraud is almost always committed by employees, a labour law procedure will almost always follow any instance of fraud. Should the fraudster or fraudsters be suspended or summarily dismissed, or do steps need to be taken to rescind the employment contract?

5. Criminal law

Fraud is prosecutable under criminal law. This means it can be reported to the police. In any individual instance, it is advisable to weigh the pros and cons of filing a report. If you make the decision to do so, it is important to have the report properly prepared by a specialist.

LITIGATION AND ARBITRATION

No one is looking to get into a legal dispute, but despite everyone’s best efforts, they do happen. When they do, the best thing you can do is to get the right advice as fast as possible. Ideally, you want to avoid going to litigation, but depending on the circumstances, your best advice may be to take steps (legal or otherwise) right away. If it turns out that litigation is unavoidable, then you have a number of possibilities: issuing a summons, injunctive relief proceedings, or arbitration. You can also seize assets as security for your claim or to obtain the surrender of property.

We represent enterprises, institutions, executives, and shareholders in business conflicts. Our team is specialised in litigating in civil court, and has extensive experience in disputes before judges, the Netherlands Arbitration Institute, the ICC International Court of Arbitration, and the Netherlands Board of Arbitration for the Construction Industry. We give clear and transparent advice with a sharp focus on results.

• Commercial disputes
• Shareholder disputes
• Officer and director liability
• Combating fraud
• Product liability
• Professional liability
• Cancelling continuing performance contracts
• Takeover disputes

MEET THE TEAM

Daan Folgering

T +31 (6) 233 04 779 | DaanFolgering@lxa.nl 

Daan Folgering has been the partner leading LXA’s Litigation and Arbitration Team since 2012.

Daan is a litigation attorney par excellence. He has extensive experience in conducting civil suits, including injunctive relief, proceedings on the merits and appeals. He also regularly acts in dispute resolution by arbitration between international parties.

Daan is frequently consulted by companies running into fraud-related issues. A team of specialists under his supervision helps our clients to prevent fraud as well as act quickly and effectively when fraud is uncovered.

As an active member of a number of international organisations, Daan has an extensive international network of clients and colleagues abroad.

Edwin Mulders

T +31 (6) 117 30 441 | EdwinMulders@lxa.nl

Edwin joined LXA Attorneys in February 2015. He is part of LXA's Litigation and Arbitration team. Edwin Mulders studied Dutch Law at Radboud University Nijmegen. In addition Edwin also completed his education in Business Administration.

Edwin has extensive experience in civil proceedings, including summary proceedings, first instance and appeal. He is frequently involved in commercial and financial disputes and advises his clients in various fields, in prevention of liability.

As a member of a team of specialists, Edwin represents the interests of companies that have suffered from fraud. As such Edwin is frequently involved in domestic and international asset recovery.

TRACKRECORD

Management fraud

CASE #1 

Various board members of a large Dutch retailer have been engaged in illegally competing activities with their private companies for years. The facilities of the Dutch retailer were always used, which was allowed to pay for the costs. The proceeds flowed through their private companies to the board members.

At the request of one of the board members, we seized evidence from the other board members. This allowed the fraud to be proven. The fraudulent directors have been fired and the damage has been recovered from their private assets and from the assets of their companies.

CASE #2

A director committed large-scale accounting fraud. In doing so, he channeled the turnover to a competitor and left the costs in the company, only to transfer them to the competitor himself. In addition, he tried to transfer a large part of the company's staff to the competitor free of charge. As a result, the company was faced with very substantial debts. The specialists of LXA assisted the other directors and shareholders of the company.

At the request of the other directors and shareholders of the company, we have successfully levied various (European bank) attachments. In addition, proceedings have been instituted against the fraudulent director and the competing company. The specialists of LXA have worked closely with forensic accountants, tax specialists, bailiffs and criminal lawyers.

Employee fraud

CASE #1

For years, the controller of an international transport company has been transferring money to the accounts of companies associated with him. To this end, receipts were forged, invoices were falsely drawn up and various accounting tricks were performed. The fraudster was assisted by colleagues from the purchasing department.

After thorough analysis of the accounts by forensic accountants, the fraudulent actions were proven. Assets of the fraudsters were seized. The fraudsters were fired and the damages were largely recovered from the fraudsters. The criminal proceedings are still ongoing.

CASE #2

The controller of an international pharmaceutical company has for years been transferring money to the accounts of companies associated with him. To this end, receipts were falsified, invoices were falsely drawn up and various accounting tricks were performed. The fraudster had the cooperation of (legal) persons associated with him.

After thorough analysis of the accounts by forensic accountants, the fraudulent actions were proven. Assets of the fraudsters were seized. The fraudsters were fired and the damages were largely recovered from the fraudsters. The criminal proceedings are still ongoing.

Executive fraud

The management of a large international secondment agency wished to sell the shares of its company. In order to generate a higher price, the management included various inaccuracies in the accounts.

A thorough data analysis of the accounts showed that the value of the company was significantly lower than proposed by the sellers.

The assets of the sellers were seized. Part of the purchase price paid was recovered from the sellers.

Phishing

A CFO has to enter additional verification codes when transferring funds. A few days later, it appeared that large amounts of money had been transferred to unknown foreign bank accounts without any legal basis.

The specialists of LXA immediately seized various (European) bank accounts. In close cooperation with the (international) banks involved, the money was recovered immediately and damage was prevented.